Microsoft developing two new Xbox One models

It appears that Microsoft are planning to release a new version of the Xbox One to compete with the PS4K Neo. However, it would pack a massive 2TB hard drive to store all of the games, DLCs and other files. When it comes to the big picture, it could mean that Xbox hardware itself will be updated more frequently, akin to the release schedule of devices like smartphones.

We doubt this though, as the sources we've talked to claim that Sony is waiting to see if Microsoft will announce their upgraded console before announcing NEO. But it looks like the company doesn't want to give up on dedicated gaming consoles. Sources familiar with Microsoft's Xbox plans tell The Verge that the refreshed Xbox One will be 40 percent smaller than the current model, and will likely include 4K video support. It is possible that Microsoft will give more details come June's gaming trade show, as the company has not given any comments for now.

Kotaku is first to break news about the Xbox One consoles and reports that the Xbox One Slim is going to be in stores later in the year.

With PlayStation already having their own VR headset coming out this year, the move certainly makes sense.

This is all a part of Microsoft's master plan, reportedly called "Project Helix", which is their attempt to fuse Xbox and Windows together. Microsoft's current performance target for Scorpio is around six teraflops, the source said-quite a bit higher than PlayStation NEO's expected 4.14 teraflops. That jump in power might be explained by earlier reports that it would be "technically capable of supporting the Oculus Rift".

According to Ars Technica's report, the game in question featured the acronym "VR" in its working title, and is also in development for the PlayStation 4 and PCs.